Mastering Strategic Risk	3
	Contents	9
	Preface	15
	Acknowledgments	17
	Introduction: Mastering the Complexities of a New Age	19
	CHAPTER 1 The Round World, the Square Pegs: Redesigning Organizations to Manage the Risks of a Different World	23
	RIGHTING THE SHIP: MANAGING THE COMPLEXITIES OF A NEW AGE	23
	THE UNTOLD STORY OF WACHOVIA’S DEMISE: THE RISE AND FALL OF AN INDUSTRY GIANT	25
	A Legacy to Be Proud Of	26
	What Went Wrong	29
	A SYMPTOM OF A MUCH LARGER CHALLENGE	30
	THE BURNING PLATFORM: WHY THE NEED FOR CHANGE	32
	LEVERAGING THE POWER OF PEOPLE	33
	A WORLD OF PATTERNS: DOES NATURE HOLD THE ANSWERS?	34
	REFERENCES	35
	CHAPTER 2 The Three Elements: Creating, Facilitating, and Supporting Your Competitive Advantage	37
	A FRAMEWORK TAKEN FROM NATURE	37
	Natural Systems	37
	THE HUMAN BODY AS AN EXAMPLE	40
	The Nervous System	41
	Governance and the Body: The Cell Cycle and Temperature	42
	ECOSYSTEMS	43
	THE THREE ELEMENTS AND OUR MARKETPLACE	44
	The Creative Element and the Marketplace	44
	THE THREE ELEMENTS AND THE AUTO INDUSTRY	49
	THE THREE ELEMENTS AND ORGANIZATIONS	50
	The Motorola Story	50
	Aligning the Three Elements with Corporate Activities	52
	THE CREATIVE ELEMENT IN ORGANIZATIONS	52
	Facilitation	53
	Support	53
	INFORMATION TECHNOLOGY AS AN EXAMPLE	54
	EVERYTHING OLD IS NEW AGAIN	54
	SUMMARY	56
	QUESTIONS	56
	NOTE	57
	REFERENCES	57
	CHAPTER 3 The Three Forces: Mastering Strategic Risk with Repetition, Balance, and Movement	59
	ANTICIPATING CHANGE: TOYOTA	59
	THREE FORCES THAT DICTATE PERFORMANCE IN SYSTEMS	61
	MOVEMENT AND CHANGE IN NATURE	62
	Movement and Change in the World We’ve Created	62
	Balance in Nature	65
	Repetition in Nature	65
	MOVEMENT, BALANCE, AND REPETITION IN OUR MARKETPLACE	66
	Balance in the Marketplace	68
	Repetition in the Marketplace	68
	CHANGE, BALANCE, AND REPETITION IN ORGANIZATIONS	69
	Blockbuster and the Impact of New Technology	70
	Change and Technology	71
	Balance in Organizations	71
	Repetition in Organizations	71
	THE THREE ELEMENTS AND FORCES AND OUR SYSTEM OF GOVERNMENT	72
	The Creative Element	72
	Support and the Federal Government	74
	Facilitation and the State	75
	THE FEDERAL GOVERNMENT SUPPORTS, FACILITATES, AND CREATES: A FRACTAL VIEW	75
	THE FEDERAL GOVERNMENT AND OVERSIGHT	76
	A HOLISTIC APPROACH	77
	SUMMARY	78
	QUESTIONS	78
	REFERENCES	79
	CHAPTER 4 Transforming the Corporate Agenda: Applying the New Learning to Master Strategic Risk	81
	ALIGNING THE THREE ELEMENTS AND FORCES FOR IMPACTFUL RESULTS	81
	THE THREE ELEMENTS AS KEY DRIVERS OF ORGANIZATIONAL PERFORMANCE	83
	Driving Growth through Continuous Creativity and Innovation	83
	The Talent Factor and Innovation	84
	CREATIVITY AND INNOVATION THROUGH THE LENS OF INDUSTRY LEADERS	85
	Google—Building a Culture of Innovation	85
	The IKEA Way	87
	Bell Labs—A Trailblazer of American Corporate Innovation	88
	IDENTIFYING ADDITIONAL CENTERS OF CREATIVITY AND GROWTH IN THE MOST UNLIKELY OF PLACES	89
	McDonald’s and Its DNA of New Product Development	89
	GROWTH THROUGH FACILITATIVE FUNCTIONS AND CAPABILITIES	92
	Wells Fargo	92
	GROWTH THROUGH SUPPORTIVE FUNCTIONS AND CAPABILITIES	94
	Mobile Banking	94
	REPETITION AND OPERATIONAL EXCELLENCE	96
	WACHOVIA AND MERGER INTEGRATION	96
	MANAGING MOVEMENT AND CHANGE	99
	THE VALUE OF A TRANSFORMATION AND CHANGE COE	99
	THE IMPORTANCE OF MEASURING KEY CONTROLS AND ACTIVITIES	101
	Evaluating What Matters Most: The Human Body Example	101
	Evaluating Organizational Performance Today	102
	ASSESSING KEY DRIVERS THROUGH THE UNIVERSAL GUIDE	103
	Strategic Risk Assessment	105
	Strategic Suppliers Driving Value	105
	Growth Opportunity Assessment	106
	SUMMARY	106
	QUESTIONS	107
	REFERENCES	107
	CHAPTER 5 Risky Business: Why the Environment Should Matter to You	109
	OUR SELF-CENTERED INTERESTS	109
	THE TRUTH ABOUT SYSTEMS	112
	OUR COMMERCIAL ECOSYSTEM	112
	DRIVING GROWTH AND SHAREHOLDER VALUE THROUGH SUSTAINABILITY	116
	Brand Imprinting	117
	DEMYSTIFYING THE MYTH . . . WHAT REALLY IS A CORPORATION?	118
	A LESSON ON THE ENVIRONMENT AND SUSTAINABILITY	119
	TD Bank and Its Green Initiatives	121
	OTHER FACTORS DRIVING COMMERCE	122
	IMPROVING OUR INTERACTION WITH THE PLANET	123
	Early Discovery	124
	Acquisition and Expansion	124
	Consumption	125
	Sustainment	127
	MAKING THE CASE FOR THE ENVIRONMENT	128
	THE CORPORATION AND THE COMMUNITY	128
	THE REALITIES OF LIFE DOWNSTREAM	129
	IN THE END, IT’S ABOUT THE INDIVIDUAL	130
	SUMMARY	131
	QUESTIONS	132
	REFERENCES	132
	CHAPTER 6 Governance, the Cornerstone of Risk: The True Role of Accountability in Organizational Systems	133
	GOVERNANCE IN NATURAL SYSTEMS: THE HUMAN BRAIN AS AN EXAMPLE	133
	WORLDCOM AND THE BERNIE EBBERS STORY	135
	The Back Story: How It Began	136
	STRATEGY AND GOVERNANCE	138
	COMPLACENCY AND GOVERNANCE	141
	THE ROLE OF ACCOUNTABILITY IN SYSTEMS	141
	ACCOUNTABILITY AT ADULANT TECHNOLOGIES	142
	THE IMPORTANCE OF ROLES AND RESPONSIBILITIES	143
	Mangroves	144
	The Outside Auditor	145
	A CRISIS OF CORPORATE CULTURE: THE STORY OF NEWS CORP	145
	THE INDEPENDENT BOARD OF DIRECTORS	148
	Adelphia Communications	148
	SUMMARY	150
	QUESTIONS	151
	NOTES	151
	CHAPTER 7 The Game Changer: Stewardship—Taming the Land Grabbers, Passive Aggressors, and the Mighty Ogre	153
	THE COUP D’ÉTAT	153
	IT’S TIME FOR CHANGE	155
	The Passive-Aggressive Leader	156
	The Land Grabber	157
	The Mighty Ogre	159
	The Culture in Which These Characters Thrive	160
	The Corporate Steward	162
	A PROFILE IN LEADERSHIP	162
	It’s All About People	163
	Accountability is Crucial	164
	Change Is Not a Choice	166
	We Live in an Integrated World	167
	SUMMARY	169
	QUESTIONS	170
	REFERENCES	170
	CHAPTER 8 The Risks of Human Capital: Unleashing the Conceivers, Deal Makers, and Sustainers	171
	A NEW HUMAN RESOURCES MODEL	171
	Individual Career Planning	173
	Risks, Rewards, and Rule Breakers	174
	Conceivers: Creating the Market	177
	Ted Turner, Visionary	178
	Deal Makers: Making the Market	179
	Sustainers: Supporting the Market	181
	THE INTERNET EXAMPLE	182
	A NEW MODEL FOR EVALUATING TEAMS	183
	The Criticality of Evaluating Personality Types on Teams	185
	THE DIVERSITY TRAP	187
	THE THREE FORCES AND THE NEW HR MODEL	188
	Change and Movement	188
	Balance	190
	The Importance of Repetition	191
	SUMMARY	191
	QUESTIONS	192
	CHAPTER 9 Waking Sleeping Giants: The Importance of Empowering Employees	193
	THE EMPOWERED EMPLOYEE: THE KEY TO DRIVING PEAK PERFORMANCE	193
	CITRIX SYSTEMS INC.: CULTIVATING A CULTURE OF EMPOWERMENT	196
	ADAPTING TO A MOBILE WORKFORCE	198
	EMPLOYEE ENGAGEMENT AND ITS LINKAGE TO EMPOWERMENT	199
	The Empowered Shepherd Boy	199
	A Wonderful Opportunity in Time	200
	A PROFESSIONAL DEVELOPMENT JOURNEY	201
	REINVENTION AND THE INDIVIDUAL	203
	THE LEARNING ORGANIZATION’S CONNECTION TO MOVEMENT AND CHANGE	204
	The Cost of Complacency and Entitlement	204
	A Relatable Example	205
	THE IMPORTANCE OF INFUSING NEW BLOOD INTO YOUR ORGANIZATION	207
	EMPLOYEES DRIVING SHAREHOLDER VALUE	208
	Ritz Carlton: Driving Value through Critical Employee Resources	208
	TAPPING EMPLOYEE RESOURCES TO ENHANCE VALUE	209
	DO THEY HAVE A DOG IN THE FIGHT?: ENGAGEMENT THROUGH CREATING A COMPELLING VISION	210
	The Situation	211
	SEIZING THE OPPORTUNITY AT HAND: A MESSAGE TO EMPLOYEES	214
	SUMMARY	216
	QUESTIONS	217
	REFERENCES	217
	CHAPTER 10 The Shining Moment: Unlocking the Potential and Promise of the Twenty-First Century	219
	HENRY FORD: RIDING THE WAVE OF CONVERGING FORCES	219
	OUR WORLD THEN AND OUR WORLD NOW	221
	THE CALL FOR TRANSFORMATION	222
	MASTERING CHANGE MATTERS MORE NOW THAN EVER BEFORE	223
	The Prehistoric and Ancient World	223
	The Early–Late Ages	224
	The Advanced/Modern Era	224
	The Post-Advanced/Modern Era	224
	ENHANCED CAPABILITIES DRIVING CHANGE	225
	HUMAN BEINGS: OUR GREATEST NATURAL RESOURCE	226
	MAN’S COMING OF AGE	228
	WHAT WILL BE OUR LASTING LEGACY?	231
	THE WAY OF THE WORLD: REVISITING THE CORE ELEMENTS AND FORCES	233
	THE EMERGING STEWARD: WHY ORGANIZATIONS MUST LEAD FROM THE EDGE	235
	THE MASTERS OF OUR FATE	236
	Integration	236
	Polarity and Duality	236
	SUMMARY	238
	REFERENCES	239
	About the Author	241
	About the Companion Web Site	243
	Index	245